Will the action prosper? Explain.
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Ubaldo is the owner of a building which has been leased by Remigio for the past 20 years. Ubaldo has repeatedly assured Remigio that if he should decide to sell the building, he will give Remigio the right of first refusal. On June 30, 1994, Ubaldo informed Remigio that he was willing to sell the building for P5 Million. The following day, Remigio sent a letter to Ubaldo offering to buy the building at P4.5 Million. Ubaldo did not reply. One week later, Remigio received a letter from Santos informing him that the building has been sold to him by Ubaldo for P5 Million, and that he will not renew Remigio’s lease when it expires. Remigio filed an action against Ubaldo and Santos for cancellation of the sale, and to compel Ubaldo to execute a deed of absolute sale in his favor, based on his right of first refusal.
a) Will the action prosper? Explain.
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- Spiderman offered, in writing, to sell Black Widow a piece of land for $200,000. Spiderman signed the offer and wrote that it was contingent on Black Widow accepting within 10 days. On day five, Spiderman received and accepted a better offer from Captain America and transferred the land to Captain America on that day. Black Widow, who didn't know about the sale to Captain America, called Spiderman on day seven and accepted his offer. Spiderman told Black Widow it was too late, that he got a better offer from Captain America, and that Captain America now owned the land. Black Widow sues Spiderman for breach of contract. Judgment for whom? Choose the best answer. a. Judgment for Black Widow, because Spiderman's offer was irrevocable for ten days, and Black Widow accepted on the seventh day b. Judgment for Spiderman, because her offer was revocable c. Judgment for Black Widow, because Spiderman's offer was in writing d. Judgment for Spiderman, because even if Spiderman is liable to Black…Aki offered to sell her house and lot to Jannie for P2,000,000 who was interested in buying the same. In her letter, Aki stated that she was giving Jannie a period of one month within which to raise the amount. A week before the expiration of the period, Aki told Jannie that she is no longer willing to sell the property unless the price is increased to P3,000,000. May Jannie compel Aki to accept the P2,000,000 first offered? No, because the increase in the price is 50% and is deemed iniquitous and unconscionable. Yes, the period is deemed for the benefit of Darleane as it was Tin who voluntarily offered the period to her No, because the promise to sell had no cause or consideration distinct from the selling price Yes, because this is an obligation with a period intended for the benefit of both partiesBob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. How much, if any, gain or loss did Carl recognize with respect to the sale by Carl to his business associate? Select one of the following answers and show your work below: a. No gain or loss was recognized. b. $11,000 gain was recognized. c. $12,000 gain was recognized. d. None of the above is correct.
- Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. How much, if any, was Bob’s recognized gain or loss with respect to these transactions determined taking all of these facts into consideration? Select one of the following answers: a. No gain or loss is recognized. b. $11,000 gain is recognized. c. $214,000 gain is recognized. d. The transfer by Bob to Carl is a gift. e. $21,000Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. What is Bob's bases in the triplex? Select one of the answers below and show your work: a. $86,000 b. $279,000 c. $300,000 d. $312,000Anton purchases a building on May 4, 2002, at a cost of $370,000. The land is properly allocated $40,000 of the cost (total cost $410,000). Anton sells the building on October 18, 2020, for $370,000. If an amount is zero, enter "0". a. What is the character of Anton's gain or loss on the sale if he uses the regular MACRS system and the building is an apartment building? Assume the accumulated depreciation at the time of the sale is $208,990. The total gain would be _____, of which ______is Section 1250 recapture and_______is unrecaptured Section 1250. Any balance is considered a long-term capital gain . b. What is the character of Anton's gain or loss on the sale if he uses the regular MACRS system and the building is an office building? Assume the accumulated depreciation at the time of the sale is $147,384. The total gain would be_____, of which _____ is Section 1250 recapture and ______ is unrecaptured Section 1250. Any balance is considered Section 1231 gain
- Steve orally agrees, at a family reunion picnic, to buy Bob's farm for $250,000, and all the terms of the agreement are settled. Bob agrees to let Steve come onto the property before the closing date so that Steve can renovate the farmhouse kitchen and build a new barn before he takes over formally. By the time Bob tells Steve that he has changed his mind and that he will not be completing the transaction on the closing date, Steve has spent $40,000 on the property. Under the Statute of Frauds, since their agreement was not evidenced in writing, Steve cannot enforce it in court, and cannot recover the $40,000. Steve can use the doctrine of promissory estoppel to force Bob to complete the transaction and give him the farm in exchange for $250,000. Because of the Statute of Frauds, Steve cannot get the farm, but he can sue Bob for the tort of deceit and recover the S40,000. Steve can ask a court to order specific performance of the contract because he has spent a lot of money on the…Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Three years after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. Without taking into consideration any changes to the adjusted basis of the property subsequent to the exchange with Bob (such as for depreciation), how much, if any, is Carl’s recognized gain with respect to these transactions? Select one of the answers below and show your work: a. No gain or loss on the exchange with Bob, and $12,000 gain on the subsequent sale b. $11,000 gain on the exchange with Bob, and $12,000 gain on the subsequent sale. c. $12,000 gain on the exchange with Bob, and $279,000 on the subsequent sale. d. None of the above is…Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two years after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000. Without taking into consideration any changes to the adjusted basis of the property subsequent to the exchange with Bob (such as for depreciation), how much, if any, gain or loss did Bob recognize with respect to the exchange with Carl? Selecton one of the answers below and show your work: a. No gain or loss was recognized. b. $11,000 gain was recognized. c. $214,000 gain was recognized. d. The transfer by Bob to Carl is a gift. e. $21,000